Every week, we get a roundup of recent developments in Right to Repair news, courtesy of Paul Roberts from Fight to Repair, a reader-supported publication. Sign up to receive updates in your inbox. (It’s free!) Or become a premium subscriber for access to exclusive content and live events!
A federal judge for the Northern District of California cleared the way for a class action lawsuit to proceed that seeks relief from what it claims is Tesla’s unlawful monopoly on aftermarket parts and repair.
A group of Tesla owners living in California, Colorado, Florida, and Maryland are suing Tesla, arguing that the electric vehicle company forces owners to use Tesla parts and service, thereby violating the federal Sherman Act (which says that repair parts and service can’t be “tied” to the sale of goods). In November last year, Tesla succeeded in a move to dismiss the case—with U.S. District Judge Trina Thompson finding that the Tesla owners had “failed to show either that the alleged problems were ‘not generally known’ when they bought their vehicles, or that they could not predict the costs to keep their vehicles running.” Things looked good for Tesla at the end of the year.
But the Tesla owners didn’t stop there. In December, they submitted a Second Consolidated Amended Complaint, providing evidence more evidence of monopolistic behavior. Now, Judge Thompson has reviewed the owners’ complaint and ruled in their favor, denying a motion by Tesla and its attorneys to dismiss the case. The lawsuit against Tesla for monopolistic behavior will go on.
Judge Thompson also ruled, in November, that the plaintiffs customers could not prove that Tesla coerced them into using its services and parts simply because they had bought their vehicles in the first place. Despite ruling in Tesla’s favor, the judge invited the plaintiffs to address those issues and resubmit their complaint for consideration. In her latest ruling, Judge Thompson said that the plaintiffs proved that they were not generally aware of the costly restrictions on repair, maintenance and aftermarket parts that Tesla imposes.
In the meantime, vehicle owners and independent repair professionals have highlighted how Tesla’s restrictive repair ecosystem and the lack of consumer choices leads to exorbitant costs. Videos by the YouTuber Rich Rebuilds, an independent EV repair shop, have highlighted a $700 repair for a new Tesla Model 3 in which the customer was quoted $16,000 to fix the same problem by the authorized Tesla dealer, or a $22,500 quote to replace a Tesla battery that the independent shop completed for just over $5,000.
Services and other revenue increased by $2.2 billion or 37% in 2023 and accounted for around 9% of Tesla’s $96.8 billion in revenue last year. That was driven, in part, by “higher used vehicle revenue driven by increases in volume, body shop and part sales revenue, non-warranty maintenance services revenue,” the company reported. CEO Elon Musk recently told shareholders that the company’s services arm had become profitable, declaring it “kind of a big deal.”
More News
- Federal Automotive Repair Law Gains Bipartisan Support: The proposed federal REPAIR Act picked up the support of two more co-sponsors: Reps. Elise Stefanik, (R-New York), and Bill Foster, (D-Illinois), joined as new supporters, bringing the total to 54 co-sponsors (27 Democrats, 27 Republicans). Known as the Right to Equitable Professional Auto Industry Repair (REPAIR) Act, the bill is a federal version of auto right to repair laws passed in Massachusetts and—more recently—Maine. It requires manufacturers to allow vehicle owners to access their car data. Rep. Warren Davidson (R-Ohio) said that the bill ensures vehicle owners can access and share their data and use third-party repair shops, tools, and parts. As of this past week there are 54 co-sponsors, with an even split between Democrats and Republicans, offering hope for it to become law.
- Appeals Court Ruling Could Upend Repair-Focused DMCA Exemptions: A ruling in a case challenging the Librarian of Congress’s exemption of certain medical device software from Digital Millennium Copyright Act (DMCA) anti-circumvention provisions during the recent triennial review could jeopardize the right of independent repair providers to continue servicing medical devices. An October 2021 exemption to the DCMA’s prohibition on bypassing technological protections on digital copyrighted material covered certain classes of copyrighted works, e.g., medical software in devices like CT scanners and MRI machines.
- Stopping the Fastest Growing Source of Waste in the World: Ugo Vallauri, co-founder of The Restart Project, was interviewed in Forbes on the power of repair in empowering communities to resist waste—especially e-waste. After years of organizing and advocacy, new Right to Repair laws in Europe are set to enhance product repairability, decrease waste, and shift consumer behavior away from disposable products. Ugo and his colleagues are advocating for longer-lasting electronics and encouraging a sustainable approach to consumption and production.
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